A filter assembly is used for removing impurities from a fluid flow. For instance, a filter assembly can be used for removing particulate matter or water from a fluid such as hydraulic fluid or fuel for use with engines or other machines. The removal of the impurities can prevent damage to downstream systems or improve performance thereof. One particular impurity in fuel or hydraulic fluid that can be problematic is the inclusion of water. Filter assemblies of the past have been configured to remove water from the fluid. Unfortunately, the stripped water can then just sit in the filter assembly. The present invention relates to improvements over the current state of the art and particularly improvements in handling water stripped from the fluid to be filtered.